Price parity key to used EV sales, say dealers
More than half of the UK’s used car dealers say that EVs are much easier to sell when they reach the same price as a petrol equivalent.
As used EV sales rocket, research by Startline Motor Finance found that a third of dealers said selling EVs has generally become easier in 2024 but that cost remained a key influencing factor.
The Startline used car tracker revealed that 53% of dealers reported that as prices of EVs reach parity with petrol cars, electric vehicles were becoming much easier to sell. However, more than a third said some customers remained very resistant to the idea of an electric car.
Paul Burgess, CEO at Startline Motor Finance, said: “The large reductions in prices and values seen for EVs in the last year or so have received a lot of attention, and mean we are now in a situation where many comparable used EVs and petrol models are priced at around the same level.
“What dealers are telling us in the research is that once this kind of price equivalence is reached, EVs are much easier to sell. The message appears to be pretty straightforward – there is a strong market for used EVs when they reach parity with ICE.”
A third of dealers (32%) also said there were now more family-friendly EVs available that were easier to sell but 25% believed there was still an excess of large, expensive models in the used car market.
Burgess said: “It’s been a problem that many of the EVs that were initially brought to market were pricey, luxury models for which there has been limited used demand. That’s starting to change and dealers seem to recognise that there is now more everyday stock around that will serve the needs of a wider range of buyers.”
The survey of dealers also found 10% believed that inaccurate press coverage about supposed EV issues such as vehicle fires don’t help sales.
Burgess added: “Interestingly, we’ve carried out some research this month on whether negative, often inaccurate press stories about EVs is cutting through to consumers and the answer appears to be yes. This is probably having at least some effect on demand.”
